Windows Phone 8.1, Lumia 920, no contract here. $200 bought and paid for. Does everything I need including Internet, GPS, photos, OneDrive sync, all the business apps I need, and most of the popular apps I don't need. And calls!
Dad has the Lumia 635 which does all of the same things, just a little slower with an ok camera, for $70.
For most people, a $700 phone is a luxury.